ISLAMABAD: Federal Board of Revenue (FBR) has directed to Large Taxpayer Unit to hold inquiry against Pakistan Telecommunication Authority due to their failure to clear outstanding amount of federal excise duty amounting to Rs7806.896 million. FBR also directed to LTU to expedite the legal proceedings and submit progress.
According to details, Pakistan Telecommunication Authority (PTA) NTN 2634922, under the jurisdiction of Large Taxpayer Unit, Islamabad, earned its revenue by rendering of telecommunication services which are liable to payment of federal excise duty as being excisable services under the above provision of law but the taxpayer failed to pay federal excise duty.
Pakistan Telecommunication Authority earned revenue of Rs39,098,428,946 in the head of initial license fee and spectrum fee. Likewise PTA also earned revenue Rs2,796,073,130 in the head of annual license fee and Rs268,037,218 from numbering charges.
PTA earned revenue of Rs36,897,257 under the head of other charges. The aggregate revenue amount liable to federal excise duty was 42,199,436,551. The payable federal excise duty @18.5 on total amount was Rs 7,806,895,761. According to section 3 (1) (d) of the Federal Excise Duty Act, 2005, there shall be levied and collected duty of excise @18.5 percent of the value of excisable services provided in Pakistan including the services originated outside but rendered in Pakistan.
Federal Board of Revenue has directed to LTU to fix the responsibility against the persons at fault because the tax authorities had not taken notice of this omission.